Creditors to pick Korea Express managers

The state-run Korea Development Bank, main creditor of Korea Express, said Thursday that it will pick two arrangers next month to find a new owner for the country’s top logistics company.

Creditors are seeking to sell over 35 percent of their total 47.9 percent stake in Korea Express, held by Daewoo Engineering & Construction Co. and Asiana Airlines Inc., the airline unit of liquidity-squeezed Kumho Asiana Group.
Having accepted consent from other creditors to sell a major stake in Korea Express, KDB said it plans to pick sale arrangers in February in order to officially kick off the process to offload the interest.

“After the Lunar New Year’s holiday, the process to select sale managers and due diligence on Korea Express will begin,” a KDB official said.

KDB took over Daewoo Engineering last year as part of the state policy lender’s efforts to rescue debt-ridden Kumho group.

KDB plans to choose a preferred bidder for the major stake in April with a goal to finalize the sale by June.

The bank is expected to officially announce the launch of the stake sale in March and start inviting prospective buyers that month.

Steel giant POSCO has expressed intention to buy the Korea Express share, citing the steel industry’s needs to cut down distribution costs. Retail giant Lotte Group and food and groceries maker CJ Group are also showing interest. 

(Yonhap News)